Maybe the bailout will pay for itself

If this event has knock-on effects that threaten the solvency of some very large banks, one can be sure that the left will blame it on “capitalist greed”. The reality is that when central banks peg the price of capital near zero and thus incentivize investors to behave as if capital regenerates effortlessly, bad things are going to happen.

Nomura said it faced a possible US$2 billion loss due to transactions with a U.S. client while Credit Suisse said a default on margin calls by a U.S.-based fund could be “highly significant and material” to its first-quarter results.

For Credit Suisse this will mark the second straight quarter the bank has recorded losses on hedge fund exposure and adds to pressure on chief executive Thomas Gottstein, who is grappling with the fallout from the bank’s dealings with collapsed supply chain finance company Greensill.

4 Replies to “Maybe the bailout will pay for itself”

Maybe Credit Suisse should step back for a moment a figure out why they are lending to high risk hedge funds, who are taking out shorts on solvent companies beyond the number of shares available, give than getting caught going the wrong way on a short gives you the ability to generate losses sufficient to make you insolvent (and then some).

Money for nothing … and your chicks will cry RAPE when the money’s all gone

BTW … There has been a rush of big celebrities selling off their massively expensive vacation homes. Nothing to see here, move along … you will love your UBI direct deposit and bread line

https://www.msn.com/en-us/money/realestate/jerry-seinfeld-lists-his-27-acre-colorado-ski-for-15m/ar-BB1f0DRD

Too Big Too fail,so they will be bailed out again.
Mighty nice of our last “Conservative:Prime Minister to have passed a law allowing our bankers the right to loot their customers bank accounts,”In an emergency”.